Infosys up 2% ahead of Q1 2014 results on Friday

Business

oi-Sunil

By Sunil Fernandes

Updated: Thursday, July 11, 2013, 12:42 [IST]

Shares in Infosys have rallied more then 2 per cent ahead of its Q1 2014 results to be declared on Friday. Infosys was last trading at Rs 2534 on the National Stock Exchange.

Infosys technologies is set to declare its results on Friday and most expect the company to report muted revenue growth. The company has been struggling over the last few quarters in terms of revenue growth and profitability. Analysts believe that it would take at least 3 or 4 quarters before the company returns to decent growth rates.

In fact, in the last quarter the company had projected growth rates that were way below NASSCOM's projection for the industry.

According to a PTI report, Infosys is expected to cut 2013-14 revenue guidance to 4-6 per cent as wage hikes and higher costs are hitting its margins, offsetting the benefits of rupee depreciation, the agency news agency says quoting a Morgan Stanley report.

"A QoQ revenue decline for Infosys cannot be ruled out in Q1FY14, with higher costs and wage hikes dragging on margins in 1HFY14 - despite the strong inherent operating leverage of its bench," Morgan Stanley said in a research note.

All eyes would also be on Narayana Murthy who has returned as Chairman of the company. It would certainly be encouraging for investors, if he addresses the media after the results.

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